Lennar Homebuilding Investments in Unconsolidated Entities (Tables)

3 Months Ended

Feb. 28, 2017

Equity Method Investments and Joint Ventures [Abstract]

The total debt of the Lennar Homebuilding unconsolidated entities in which the Company has investments, including Lennar's maximum recourse exposure, were as follows:



(Dollars in thousands)	February 28, 2017			November 30, 2016
Non-recourse bank debt and other debt (partner’s share of several recourse)	$	72,162		48,945
Non-recourse land seller debt and other debt (1)	3,995			323,995
Non-recourse debt with completion guarantees	298,319			147,100
Non-recourse debt without completion guarantees	325,115			320,372
Non-recourse debt to the Company	699,591			840,412
The Company’s maximum recourse exposure (2)	77,119			52,438
Debt issuance costs	(6,123		)	(4,186	)
Total debt	$	770,587		888,664
The Company’s maximum recourse exposure as a % of total JV debt	10		%	6	%


(1)	Non-recourse land seller debt and other debt as of November 30, 2016 included a $320 million non-recourse note related to a transaction between one of the Company's unconsolidated entities and another unconsolidated joint venture, which was settled in December 2016.

(2)

As of February 28, 2017, the Company's maximum recourse exposure was primarily related to the Company providing repayment guarantees on three unconsolidated entities' debt.Summarized condensed financial information on a combined 100% basis related to Lennar Homebuilding’s unconsolidated entities that are accounted for by the equity method was as follows:Statements of Operations



	Three Months Ended
	February 28,			February 29,
(In thousands)	2017			2016
Revenues	$	46,136		99,726
Costs and expenses	79,066			97,200
Net earnings (loss) of unconsolidated entities	$	(32,930	)	2,526
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities	$	(11,534	)	3,000

Balance Sheets



(In thousands)	February 28, 2017		November 30, 2016
Assets:
Cash and cash equivalents	$	436,872	221,334
Inventories	3,977,388		3,889,795
Other assets	982,702		1,334,116
	$	5,396,962	5,445,245
Liabilities and equity:
Accounts payable and other liabilities	$	711,107	791,245
Debt (1)	770,587		888,664
Equity	3,915,268		3,765,336
	$	5,396,962	5,445,245

(1)

Debt presented above is net of debt issuance costs of $6.1 million and $4.2 million, as of February 28, 2017 and November 30, 2016, respectively. employment.

Summarized condensed financial information on a combined 100% basis related to Rialto’s investments in unconsolidated entities that are accounted for by the equity method was as follows:

Balance Sheets



(In thousands)	February 28, 2017		November 30, 2016
Assets:
Cash and cash equivalents	$	150,154	230,229
Loans receivable	418,802		406,812
Real estate owned	393,601		439,191
Investment securities	1,405,256		1,379,155
Investments in partnerships	430,844		398,535
Other assets	47,090		29,036
	$	2,845,747	2,882,958
Liabilities and equity:
Accounts payable and other liabilities	$	51,959	36,131
Notes payable (1)	557,712		532,264
Equity	2,236,076		2,314,563
	$	2,845,747	2,882,958

(1)

Notes payable presented above are net of debt issuance costs of $2.9 million, as of both February 28, 2017 and November 30, 2016. The following table reflects Rialto's investments in funds that invest in and manage real estate related assets and other investments:



								February 28, 2017		February 28, 2017		November 30, 2016
(Dollars in thousands)	Inception Year	Equity Commitments		Equity Commitments Called		Commitment to Fund by the Company		Funds Contributed by the Company		Investment
Rialto Real Estate Fund, LP	2010	$	700,006	$	700,006	$	75,000	$	75,000	$	49,445	58,116
Rialto Real Estate Fund II, LP	2012	1,305,000		1,305,000		100,000		100,000		90,837		96,192
Rialto Mezzanine Partners Fund, LP	2013	300,000		300,000		33,799		33,799		22,655		23,643
Rialto Capital CMBS Funds	2014	119,174		119,174		52,474		52,474		50,222		50,519
Rialto Real Estate Fund III	2015	1,625,605		182,909		100,000		9,805		11,559		9,093
Rialto Credit Partnership, LP	2016	220,000		88,730		19,999		8,066		8,243		5,794
Other investments										2,105		2,384
										$	235,066	245,741

Statements of Operations



	Three Months Ended
	February 28,		February 29,
(In thousands)	2017		2016
Revenues	$	57,156	44,296
Costs and expenses	28,001		20,899
Other income (expense), net (1)	327		(15,162	)
Net earnings of unconsolidated entities	$	29,482	8,235
Rialto equity in earnings from unconsolidated entities	$	722	1,497

(1)

Other income (expense), net, included realized and unrealized gains (losses) on investments.

Summarized condensed financial information on a combined 100% basis related to Lennar Multifamily's investments in unconsolidated entities that are accounted for by the equity method was as follows:

Balance Sheets



(In thousands)	February 28, 2017		November 30, 2016
Assets:
Cash and cash equivalents	$	57,975	43,658
Operating properties and equipment	2,415,610		2,210,627
Other assets	30,808		33,703
	$	2,504,393	2,287,988
Liabilities and equity:
Accounts payable and other liabilities	$	206,376	196,617
Notes payable (1)	649,034		577,085
Equity	1,648,983		1,514,286
	$	2,504,393	2,287,988


(1)	Notes payable presented above are net of debt issuance costs of $16.5 million and $12.3 million, as of February 28, 2017 and November 30, 2016, respectively.

Statements of Operations



	Three Months Ended
	February 28,		February 29,
(In thousands)	2017		2016
Revenues	$	11,617	8,314
Costs and expenses	22,346		11,672
Other income, net	50,539		40,122
Net earnings of unconsolidated entities	$	39,810	36,764
Lennar Multifamily equity in earnings from unconsolidated entities (1)	$	23,147	19,686

(1)

For the three months ended February 28, 2017, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $26.0 million share of gains as a result of the sale of two operating properties by its unconsolidated entities. For the three months ended February 29, 2016, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $20.4 million share of gain as a result of a sale of an operating property by one of its unconsolidated entities.The Company’s recorded investments in unconsolidated entities were as follows:



(In thousands)	February 28, 2017		November 30, 2016
Lennar Homebuilding	$	910,084	811,723
Rialto	$	235,066	245,741
Lennar Multifamily	$	346,767	318,559